Moving the discussion to a higher level: the proposal implies that the clients will put their 800'000 BTC (the 200'000 that are there and the 600'000 that disappeared) and a lot of cash under control of certain people. It is extremely naive to trust that those people will do what they say they will do, without making sure that they will go to jail if they don't do it. This requires reading the proposal very carefully, keeping in mind that they may be dishonest (perhaps even the thieves themselves) and very smart. Namely, if there is a loophole that will let them take some or all of that money without going to jail, you must assume that they will use it.
Right, especially when the people the creditors are supposed to trust are on record making clearly bogus and/or deliberately misleading claims, like saying Japanese bankruptcies take 10 years or implying that the trustee will somehow spend over a hundred million dollars administering the liquidation.